National Australia Bank (NAB) recently released unaudited cash earnings of $1.8 billion (US$1.2 billion) for the first quarter of 2024, showing a decrease of 16.9 percent compared to the same period in the prior corresponding year. However, the market showed confidence in the bank as its share price rose by 0.36 percent on February 21, closing at $33.61 on the Australian Stock Exchange (ASX).
During the same period, NAB reported a 1 percent increase in lending balances, including a 2 percent growth in small and medium enterprise lending, and a 1 percent increase in Australian home lending. Additionally, there was a 2 percent higher customer deposit balance across business, private, and personal banking.
The bank attributed the decrease in cash earnings to a higher tax rate of 30 percent, which affected its performance compared to the quarterly average in the second half of 2023. Despite this, NAB’s disciplined approach to growth and productivity measures allowed it to navigate the competitive market and cost pressures effectively.
Ross McEwan, CEO of NAB, expressed satisfaction with the bank’s performance during this period, highlighting the strong momentum across the organization. He also emphasized the bank’s focus on improving customer and colleague outcomes to drive sustainable growth and enhanced shareholder returns.
Amidst similar financial reports from other major banks, NAB’s quarterly performance showed strong balance sheet settings and solid financial positions. This was reflected in its common equity tier 1 ratio, which stood at 12 percent, above the bank’s target range of 11 to 11.5 percent. The news comes following Westpac’s reported $1.5 billion profit in the first quarter of 2024, with CEO Peter King focusing on the bank’s financial strength and priority to assist customers facing cost-of-living pressures.
Similarly, the Commonwealth Bank of Australia (CBA) reported a statutory net profit after tax of $4.8 billion in the first half of the financial year, representing an 8 percent decrease from the previous year. CEO Matt Comyn expressed optimism about the economy’s resilience and ongoing support from various factors, including a robust labor market and high commodity prices.